A visitor takes a photo of a double-side foldable screen at the China International Digital Economy Expo 2021 in Shijiazhuang, north China's Hebei Province, Sept. 7, 2021. (Xinhua/Wang Xiao)
BEIJING, Jan. 19 (Xinhua) -- China's State Council has released a plan to facilitate the development of the digital economy in the 14th Five-Year Plan Period (2021-2025) recently, clarifying that the proportion of the added value of core digital economy industries in GDP is expected to reach ten percent in 2025, up from 7.8 percent in 2020.
It is noted that several listed enterprises in China are learning from the plan and focusing on the new changes.
-- Digital office empowers enterprises' booming growth
"One of the most obvious changes in the industry this year is the trend of digital transformation," said Zhang Qingyuan, CEO of Kingsoft Office, adding that the digital transformation has been closely linked to national development and people's livelihood.
In December 2021, Kingsoft Office released the Kingsoft Digital Office Platform, an empowering solution based on its existing office products, covering content creation and management, collaborative office and business digitization. As an interaction hub of digital office transformation, it can support the organization of governments, state-owned enterprises, central enterprises and large private enterprises in setting up their own digital office platforms.
The digital office transformation of society as a whole will serve as an important driver for China's digital economy, said Zhang Qingyuan.
Statistics showed that, from 2020 to 2021, the number of cloud-based documents saved on Kingsoft Office had grown by 45 percent. As revealed in its financial report of the third quarter of 2021, 125.8 billion documents had been saved online, up by 82 percent.
The case of Kingsoft Office is an epitome of digital transformation of governments and enterprises.
As a key component of the new infrastructure of the digital economy, cloud service has embraced new development opportunities.
As of the end of 2021, several listed enterprises, such as Kingsoft Office and Dr. Peng Group, have proposed new cloud strategies. The core information system of the Beijing Winter Olympics has achieved full operation on Alibaba Cloud, marking the first replacement of traditional IT with cloud computing in the history of the Olympic Games.
In addition, 100 waste incinerators across nearly 30 cities have been installed with Alibaba Cloud's Industrial Brain.
Baidu Artificial Intelligence (AI) Cloud "Zero-carbon Park Solution "has been adopted in an industrial park, which has helped enterprises settled in the park to lower their electricity costs, and led to 20 percent improvement in operation and maintenance efficiency of energy use facilities through monitoring and early warning.
-- Digital finance unleashes mounting orders
According to the plan, financial sector is one of the seven major industries which require digital transformation.
Based on the third-quarter reports and whole-year performance forecasts from financial informatization enterprises, the booming demand of information technology application innovation (ITAI) in the financial sector against the backdrop of regular financial innovation has become a vital factor of the growing orders of financial information service providers.
Statistics showed that the Digital China Information Service Company Ltd. (DCITS), an integrated service provider for financial technology industry chain in China, won ITAI bids valuing 441 million yuan in the first three quarters of 2021, an increase of ten times over the same period in 2020.
Through cooperation with Tencent Cloud, DCITS has successively launched the combined solutions such as "DCITS Distributed Core + Tencent Distributed Database (TDSQL)" and "Financial New Infrastructure, Digital New Connection and Digital Transformation of Banks."
Sunline, a Chinese listed tech enterprise is likely to maintain an average annual order growth of 30 percent in the next three years. Driven by the ITAI concept, Sunline carried out business cooperation with Huawei and Tencent.
In terms of middleware business, the ITAI also becomes the new blue ocean of product demand.
TongTech, a leading provider of products and solutions in the field of high security in China, registered a total revenue of 392 million yuan in the first three quarters of 2021, up 94.85 percent year on year. The middleware products of TongTech cover types of application support, data integration and Data Middle Office.
BES, a high-tech software enterprise in China, recorded year-on-year increase of 54.2 percent and 293.55 percent in orders value and volume in the first three quarters of 2021, respectively, and secured revenues of 128 million yuan, with an increase of 74.63 percent. Its customers among banking, foundation and insurance and other financial sectors grew by over 333 percent, signifying that more ITAI-related orders will be signed in the upcoming years.
-- Investment potential in digital economy
According to the plan, 5G networks, the national integrated data center system, and industrial Internet will be major directions in improving and upgrading the new infrastructure.
In addition, data service industry, virtual reality (VR), digital twin, cyber security and data encryption, along with other terms, are additional future-oriented investment directions.
It is noted that many listed enterprises have taken action to strengthen digital development.
For example, Wangsu Science and Technology Co., Ltd. plans to invest one billion yuan for the security business, including establishing a security lab and introducing outstanding personnel to undergo intensive study of cutting-edge technologies.
Shenzhen Kingdom Sci-Tech Co., Ltd., a pioneer in domestic securities trading system, has also established the two strategies of "Fintech + Digital Economy." Aside from further enhancing its competitiveness in traditional fields, it will seek new sources of growth in the innovative businesses.Although the plan does not mention the concept of Metaverse, which is currently a hot topic in the capital market, yet it lays out the direction for the development of VR and AI.
Zhao Xing, professor of East China Normal University, stated that the new round of technological revolution and industrial transformation is well underway across the globe, and the new-generation network information technology continues to undergo iteration and upgrading, thereby providing solid conditions for the development of Metaverse.
In the future, Metaverse will make progress in the fields such as office, education, industry, gaming, social communication, cultural and creative industry, and content, and will also penetrate into other sectors, Zhao added.
(Edited by Jiang Feifan with Xinhua Silk Road, 346129473@qq.com)
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